(Back to) The Way We Were

  It’s hard to believe that it’s now been five years ago that many of us went into our places of work, packed up, and went home for what most thought would be a week, maybe two — and wound up being a lot more than that.

I was reminded of just how long it had been at a meeting last week — a group that first gathered a little more than five years ago. Honestly, until it came up in discussions, I hadn’t realized how long it had been — and how much has changed since.

In March 2020, my wife and I had just returned from a funeral in the Boston area. While the worst of what we would come to learn about COVID was — well, yet to be learned — we knew that cautions were in order. So we drove, rather than flew to the event — which wound up being full of strangers (many of whom were in what would come to be acknowledged as “vulnerable” health categories).

In hindsight, what might have been a “super spreader” event didn’t turn out to be one —even though less than 48 hours later the governor of the Commonwealth was putting in place lockdowns and restrictions that would have precluded our trip. We’ve not regretted that trip for a moment over the past five years, though on more than one occasion since I’ve thought to myself just how remarkable that was. It could have been life-changing.   

Back to ‘Normal’

Of course, by some, perhaps most, measures — we’re now back to “normal.” Oh, I know there are still debates about returning to the office, and there are doubtless more Zoom/Team calls today than pre-COVID (though almost certainly less than there were in the middle of it). That said, one rarely sees a mask in public these days, even in the most crowded airports. Indeed, what some might call resilience, others term complacency — and there’s little doubt in my mind that, for ill or better, should another pandemic emerge, we’ll likely respond differently than we did for COVID.   

That said, while COVID, or the response to COVID, has affected us all in some ways — and continues to do so — the impact was … uneven. Some industries — ours included — pretty much packed up one night, went home — and continued to do what we do every day (with modest adjustments). Some — notably schools — tried to pivot to remote learning overnight with what were deemed necessary, but arguably unsatisfying results. At some point, we should have learned (admitted?) that viruses don’t respect bar curfews, and that religious gatherings are no more (or less?) hazardous than gathering in bars or restaurants (except perhaps, to the economy). 

And then there were some — and here one can’t help but acknowledge the bravery, commitment and sacrifice of healthcare and long-term care workers — who not only “couldn’t,” but were required to put their very lives at risk in the service of others. Indeed, I’ve walked away from this experience convinced that (1) most of the jobs that can’t be done from home are probably worth more than they’re paid; (2) many likely live further from work than we’d prefer; and (3) many of us live further from the ones we love than we realize.

All that said, five years ago who could have imagined how much our lives — and our very way of existence could change … overnight. While there were many dark and uncertain days in between then and now, I’m in awe of the resilience with which we’ve recovered, the degree to which we have returned — more or less — to “normal.” That said, I hope we never lose our collective memory of what it was like to open our mail outdoors, to feel the ache of not being able to gather with loved ones, or worse — to be precluded from being with them at life’s end.       

With all the sadness and uncertainty that came with COVID, I’m thankful for its renewed appreciation for life, family, and friends — for the time it gave to think about what’s really important in life. For the reminder it provided of the impact and importance our physical health brings to our focus on financial preparations, and yet the critical role that our financial preparations provide in and for our lives. 

Here’s hoping, in other words, that while in many ways we are back to “the way we were” — that that “way” includes a renewed appreciation for what we have — and what we might yet lose.

• Nevin E. Adams, JD

Life-Changing Times

 It’s hard to believe that just two years ago many of us went into our places of work, packed up, and went home for what most thought would be a week, maybe two—and wound up being a lot more than that.

In March 2020, my wife and I had just returned from a funeral in the Boston area. While the worst of what we would come to learn about COVID was—well, yet to be learned—we knew that cautions were in order. So we drove, rather than flew to the event—which wound up being full of strangers (many of whom were in what would come to be acknowledged as “vulnerable” health categories). Throughout we were aware, conscious of a certain risk, but we were not overly cautious—about on the order of what you would do when you come into contact with someone who had a cold. 

In hindsight, what might have been a “super spreader” event didn’t turn out to be one—even though less than 48 hours later the governor of the Commonwealth was putting in place lockdowns and restrictions that would have precluded our trip. We’ve not regretted that trip for a moment over the past two years, though on more than one occasion since I’ve thought to myself just how remarkable that was. It could have been life-changing.   

In fact, the past two years have been life-changing in such different ways—many have lost loved ones, and, worse, been precluded from saying “good-bye”—others have had damage to their health, or the health of loved ones—many more have suffered financial hardship—and, incredibly, some have not only emerged relatively unscathed, but prospered, at least financially—spared travel and commuting expenses, and perhaps even courtesy of assistance funds from the federal government. Most of us can identify with more than one of those categories. 

That said, while COVID, or the response to COVID, has affected us all[i] in some ways—and continues to do so—the impact was… uneven. Some industries—ours included—pretty much packed up one night, went home—and continued to do what we do every day (with modest adjustments). Others—restaurants, hotels, airlines, law enforcement, fire departments—couldn’t. Some—notably schools—tried to pivot to remote learning overnight with what are/were necessary, but arguably unsatisfying results. And then there were some—and here one can’t help but acknowledge the bravery, commitment and sacrifice of health care and long-term care workers—who not only “couldn’t,” but were required to put their very lives at risk in the service of others. 

These actions, and the response to these actions, will almost certainly be life-changing—in ways we cannot now fully appreciate. 

Amidst labels like the “Great Resignation,” it’s been widely proclaimed that we’re never going back to “normal”—that work, at least the notion of a 5 day/week physical location—has been changed…forever. And certainly, for some workers and workplaces, that is true. Whether that will be for good or ill, whether “cultures” can (or should) still be nurtured on that basis remains to be seen. 

However, the COVID pandemic has also illuminated—in a unique way—the importance of workplace benefits: the financial buffer that retirement savings can (and do) provide in an emergency, the synergies between our financial and physical health, and an opportunity for these programs to be—to the extent they aren’t already—an integral component of an organization’s culture.

And if these programs are an integral component of your culture—what does it say about your organization? Is it “just enough” to get by? 

Or could it be… should it be… life-changing?

- Nevin E. Adams, JD

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[i] Indeed, I’ve walked away from this experience convinced of a couple of things: (1) most of the jobs that can’t be done from home are probably worth more than they’re paid; (2) many of us live further from the ones we love than we realize; and (3) many likely live further from work than we’d prefer. 

The ‘Best’ of 2021

I’ve been writing a weekly column (and then some) for more than two decades now. Some are easier to write (and read)—and some hold up better (and longer) than others. These are some of my (and perhaps your) favorites from 2021.

Let me know what you think in the comments below… particularly if I have missed one of your favorites… 

What’s So Special About College Debt?

Student loan debt—or more precisely, the forgiveness of some part of it—has dominated the headlines of late—but it’s been on the minds of retirement plan sponsors for a while now. The question is—why? https://www.napa-net.org/news-info/daily-news/whats-so-special-about-college-debt

Bundled Versus Unbundled: 5 Myths

While there are some amazing bundled solutions, ERISA’s admonition to act solely in the interests of plan participants (and beneficiaries), alongside the requirement that those be reasonable in terms of cost and value, call for a careful and considered evaluation. In that vein, there are some “myths” that seem to be prevalent regarding those choices, perceptions that persist even today. https://www.napa-net.org/news-info/daily-news/bundled-versus-unbundled-5-myths

Is COVID-19 a Retirement Story?

A recent paper was titled “COVID 19 Is Not a Retirement Story.” A week later, an article on Forbes.com said: “COVID-19 Is Most Certainly a Retirement Story.” So, which is it? https://www.napa-net.org/news-info/daily-news/covid-19-retirement-story

‘The 37-Year-Olds Are Afraid of the 23-Year-Olds Who Work for Them’

Yes, having lived through the not-so-subtle eye-rolling of younger co-workers (and the more recent dismissive “OK, Boomer” commentary), I couldn’t help but find some small modicum of comfort in the notion that that generation was, essentially, being hoisted on its own generational “petard.” https://www.napa-net.org/news-info/daily-news/37-year-olds-are-afraid-23-year-olds-who-work-them

Attention Getters

I was recently taken to task for a column about retirement savings regrets. https://www.napa-net.org/news-info/daily-news/attention-getters

5 Plan Committee Missteps

There is frequently a difference between doing what the law requires and doing everything that you could do as a plan fiduciary. That said, there are things that plan fiduciaries must do—and things that, while not required, can keep the plan, and plan fiduciaries out of trouble. https://www.napa-net.org/news-info/daily-news/5-plan-committee-missteps

Three ‘Scary’ Things That Give Plan Sponsors Chills

Halloween is the time of year when one’s thoughts turn to trick-or-treat, ghosts and goblins, and things that go bump in the night—and, for plan sponsors, and those who support them, a good time to think about the things that give us pause—that cause a chill to run down our spine… https://www.napa-net.org/news-info/daily-news/three-scary-things-give-plan-sponsors-chills

Things You Don’t Learn in School

Life has many lessons to teach us, some more painful than others—and some we’d just as soon be spared. But the graduates of 2021—well, they’ve been through a lot, arguably more than most—but with any luck at all, the days and years ahead will be brighter. Regardless, if you have a graduate—or if you are a graduate, here are some insights I’ve picked up along the way… https://www.napa-net.org/news-info/daily-news/things-you-dont-learn-school

Thanks again for all your shares, likes, support and comments along the way—wishing you all the best in 2022!

- Nevin E. Adams, JD

Regret Able

 A new survey once again highlighted a consistent regret among American workers. 

According to the survey by American Century Investments, they wish they had saved more for retirement. 

Now, only about a third shared that regret—but it was more than twice the number that had regrets about career, personal relationships, not doing enough to enjoy life—not to mention “not being a better person overall.”[i]

Now, we all have regrets about certain life decisions. There are regrets about that “Reply All” email that was perhaps a little too honest, the hours spent at work at the expense of family, perhaps the cessation of piano lessons, and even a (too) sedentary lifestyle and bad diet. Some we regret immediately—while some come only after the passage of time. Some we learn from—and vow never to repeat. And some—unfortunately—come too late to do anything but live with the consequences. And then there are those regrets—that could be remedied—but aren’t. 

Regrets about retirement savings tend to be in the latter category. People often talk about the retirement crisis in this country, but like a tropical storm still well out to sea, there are widely varying assessments as to just how big it is, and—to (continue to) borrow some hurricane terminology—when it will make “landfall,” and with what force. Most of the predictions are dire, of course—and while they often rely on arguably unreliable measures like uninformed levels of confidence (or lack thereof), self-reported financials and savings averages—it’s hard to escape a pervasive sense that as a nation we’re in for some rough weather, particularly in view of the objective data we do have—things like coverage statistics and retirement readiness projections based on actual participant data.

As we’ve certainly experienced anew over the past 18 months, life is full of uncertainty, and events and circumstances, as often as not, happen with little if any warning. Even though hurricanes are something you can see coming a long way off, there’s always the chance that they will peter out sooner than expected, that landfall will result in a dramatic shift in course and/or intensity, or that, as with some (like Katrina)—the most devastating impact is what happens afterward. In theory, at least, that provides time to prepare—but, as the recent advent of COVID and the response—sometimes you don’t have as much time as you think you have, want or will need.

Doubtless—and as the recent survey findings suggest—a lot of retirement plan participants are going to look back at their working lives as they near the threshold of retirement with some regrets. They’ll perhaps remember the admonitions about (and their good intentions to) saving sooner, saving more, and the importance of regular, prudent reallocations of investment portfolios (they may even remember reading about surveys expressing those regrets). Thankfully—and surely because of the hard work of advisors and plan sponsors—many will have heeded those warnings in time. But others, just as surely—and particularly those without access to a retirement plan at work—may not.

The end of our working lives inevitably happens for different people at different times, in different ways, and to those in different states of readiness for that “event.” But we all know that it’s coming—and those who put off preparing for it are likely destined for a retirement full of regret. And that, not just for them, but for all of us, is… regrettable.

- Nevin E. Adams, JD

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[i] In fairness, it’s entirely possible that they’ve been more attentive and/or successful in those life avenues, and thus regrets weren’t required.

"Certain" Circumstances

 My wife and I recently celebrated our wedding anniversary—it was a “big” one, one of those that almost takes your breath away thinking about how rich your life together has been.

If someone had asked on my wedding day if I thought I’d still be alive and married this many years hence, I’m sure that I would have expressed confidence, likely strong confidence, in both outcomes. However, if someone on that same day had asked me to guess then where I would be living now, what I would be doing for a living, or what my income would be (or need to be)—well, my responses would likely have been much less certain—and trust me, I would have been… wrong.

Not that there haven’t been bumps along the road—life is a series of zig-zags, after all—and no matter how carefully you try to plan—well, life is what happens to you while you’re making other plans, right? There was the wedding limo with faulty air conditioning on the hottest July day in history, the flat tire in the middle of nowhere with a packed family van (not the best time or place to learn where the “new” jack was located), the emergency appendectomy of a child halfway across the world (not to mention that of another child several hundred miles away at college), the cross-country trip where the rental vehicle had been chosen with an eye toward the size of the family—without taking into account the luggage said family would require for that trip, the “discovery” while trying to rush for a late flight that (apparently) my son’s relatively common name had flagged him for special scrutiny by TSA—and the night spent sleeping in the family van near the Grand Canyon because—sometimes and someplaces you really can’t find a hotel room at the very last minute without a reservation.

As uncertain as life’s paths can be, there is at least some rational science to retirement planning, but even then there’s the unknown as to the “when” you’ll retire, the how much you’ll want—or need—not to mention the “what” you’ll need/want to be able to afford once you’ve crossed that threshold. Not that there aren’t those kind of decisions throughout one’s career—but once that post-work threshold has been crossed—what we still tend to think of as “retirement” (though some might have another word for it these days)—well, it feels like one’s options are fewer, even if they needn’t be.

“Disruptions” are the bane of a fixed income, of course. Just when you think you have it all balanced out, you have to spend (a lot) more for gasoline, pay a higher real estate tax bill, scrape up some money for a new prescription drug, deal with the financial consequences of an unexpected medical emergency. That—despite the experience of the past several months—this can happen at the same time that your investment portfolio is taking a sustained “hit,” or that you are told the house you are living in is worth a lot less than it was (on paper, anyway) a year ago—and all of a “sudden” inflation raises its ugly head—well, it all contributes to a sense of economic uncertainty.

Throw in the gyrations of a global pandemic that can impact not only your employment options, but your portfolio value, and your longevity… well, it’s an environment that can leave one feeling that the notion of living on a “fixed” income might not be up to the task over the next couple of decades—and with some justification.

It’s been said that the only sure things are death and taxes—but the lesson for those of us still drawing a paycheck—and planning for the time when we won’t—is the importance of preparing for that third “sure” thing: uncertainty.

- Nevin E. Adams, JD

Time That Try Men's Souls

It seems trite, almost unnecessary, to comment that we are living in and through extraordinary times. 

I’m a student of history, and I have often found comfort, if not guidance, from what has gone before. As often as not, however unique and extraordinary the times seem (or are portrayed in the headlines), there’s inevitably a comparable, and almost always, an even more extreme example, of such times in decades past.[i]

And while there’s been a renewed interest in, and awareness of, the pandemic of 1918 (though I’m told the pandemic of 1957-58 is a more apt comparison to COVID-19), as the anniversary of our nation’s declaration of independence nears, I’ve been drawn to the events of 1776.

As it turns out, the newly declared (but not yet formal) nation was confronted not only with the struggle for independence (and no small number of voices that simply wanted to preserve the status quo), but with the scourge of smallpox. Just as the close quartering and movement of troops in the first World War served to spread what is now termed the “Spanish flu,” the Continental Army was confronted with a deadly disease that was arguably a larger threat to its cause than the British army.

Indeed, General Washington once wrote to Virginia Governor Patrick Henry that smallpox “is more destructive to an Army in the Natural way, than the Enemy’s Sword." And no wonder—we’re talking about a pandemic that killed one in three in the Continental Army who contracted the virus.

We mark the Fourth of July, and indeed the year of 1776, as the birth of our nation, but it’s worth remembering that it was a year full of disappointments and near disasters for George Washington’s Continental Army. One can garner a sense for the change in tide by noting in January of that year Thomas Paine published “Common Sense,” but before the year was out had turned his pen to “The American Crisis,” fretting about “sunshine patriots” and “times that try men’s souls.” And we hadn’t yet gotten to that terrible winter at Valley Forge.

There are challenges both personal and professional confronting us every day—they were “before,” though most were individualized, personal events: a death in the family, a job lost, a flood or tornado’s impact, a wildfire’s devastation. And while the events of the past several months have imposed new burdens on us all, it’s imperative that we remind ourselves that those we support and serve are struggling as well; their retirements, their plans for retirement, indeed their retirement plans themselves, despite years of careful planning and attention, may well have been upended in ways that no one could anticipate just a few short months ago.

In the days ahead, your insights, your expertise… your empathy… are going to be called upon in ways you might never have imagined. Surely, these are, certainly in recent memory, extraordinary times—times that have, and will, in some measure, continue to try our collective “souls.”

Bleak as things may seem at times, however, this is our time to shine.    

America’s retirement is depending on us.

- Nevin E. Adams, JD

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[i]Perhaps unsurprisingly, one of my favorite quotes is George Santayana’s “Those who cannot remember the past are condemned to repeat it.”

The Next Chapter

Life has many lessons to teach us, some more painful than others—and some we’d just as soon be spared. But for the graduates of 2020—well, theirs is surely a unique time. So, if you have a graduate—or if you ARE a graduate, here are some thoughts…   

My kids have passed those milestones—but I have two nieces that will graduate this year without an “official” ceremony to commemorate the occasion, no capstone to those years in pursuit of education, and preparation for the next of life’s stages, and—while social media, cell phones, TikTok and Zoom provide some solace—this is a class that will, for the moment anyway, be denied the hugs and warm embraces of classmates, friends and family alike.

That said, those next steps lie ahead—and if the when, where (and how) remains elusive—the if is surely only a matter of time. And as graduates everywhere look ahead to the next chapter in their lives, it seems a good time to reflect on some lessons learned along the way—most of which apply regardless of the times.

The world is made up of introverts and extroverts—learn and respect the difference(s).

You can “social distance” without being socially distant.

Because you’re young(er), people are going to assume you know things you don’t—and assume you don’t know things you do.

Nothing says a video conference has to include video.

There can be a “bad” time even for good ideas.

Emails can be a blunt instrument for (mis)communication.

Be who you are and say what you feel, because those who mind don’t matter and those who matter don’t mind. But not necessarily at work.

Paying the minimum due on your credit cards is dumb.

There actually are stupid questions.

A picture may be worth a thousand words, but sometimes it pays to read the fine print.

Never say you’ll never…

“Bad” people almost always get what’s coming to them. Eventually.

Always sleep on big decisions.

When it seems too good to be true, it’s generally neither good, nor true.

Never let your schooling stand in the way of your education.

Sometimes the grass on the other side looks greener because of the amount of fertilizer applied.

Never miss a chance to say, “thank you.”

Hug your parents—often.

If you wouldn’t want your mother to learn about it, don’t do it.

Bad news generally doesn’t age well.

Your work attitude often affects your career altitude.

Comments that begin “with all due respect” generally aren’t.

Sometimes the questions are complicated, but the answer isn’t.

That 401(k) match isn’t really “free” money—but it won’t cost you a thing.

And don’t forget that you’ll want to plan for your future now—because retirement, like graduation, seems a long way off—until it isn’t.

Congratulations to all the graduates out there. We’re proud of you!

- Nevin E. Adams, JD

Got some to add? Feel free to add in the comments.